Cup ‘O Naz II
As always, the Nasdaq felt compelled to have some intraday volatility. As I
write this, it is completing an intraday cup pattern, and is poised to break out
above 3270. Watch for the gap from this morning to be filled, at which point we
may see a pause.
Mimicking the Nasdaq chart is a big-name favorite of mine to
trade, Siebel Systems
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PowerRating). It has also compelted an intraday cup pattern
and is poised to take out the morning high.
Today’s Watchlist:
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PowerRating)
Vertex
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PowerRating) rallied back in late October to complete a
cup formation. After retesting the high set in September it pulled back for
three days. Tuesday we saw the first rally out of a 1-2-3 pull back (the green
line). This rally could lead to more upside. As I glance at a real-time quote, I
see it trading up near 96. If you missed the first move, then there are several
options left. First, watch for a retracement to Tuesday’s intraday high. Second,
watch for a breakout above the high of the first day of the 1-2-3 pullback.
Lastly, watch for resistance at 100, where there is often trouble. The high-volume support Tuesday’s move is quite bullish, although it is news-driven
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Until later,